This report was intended to provide some marketing insight into the demographic data 1000 sampled respondents from American household that included owners and non-owners of vehicles.It was also geared towards providing answers to various questions that were raised to understand better the readiness of the American market on vehicle models due to be rolled out in approximately three years. The analysis was done using Statistical Package for Social Sciences (SPSS) version 20. The report began by providing uni-variate descriptive statistics. Inferential statistics, in particular one sample t-tests were performed to determine whether the claims by owners of Global Motors that different automobile models have different desirability levels were true by testing their statistical significance.
Demographic Composition of the Data
Population Distribution
According to the sample data as shown in figure 1 below, 39.6% of the sampled data had a population of 500,000 to 1,000,000, 24.6% were between 100,000 to 500,000, 19% were 10,000 to 100,000, 12.8% were over 1 million while 4% were below 10,000. This seemed to suggest that the highest population distribution from the data collected was in the range of 500,000 to 1 million.
Gender of the Participants
Results of the analysis as shown in figure 2 below revealed that 56% of the participants were males while 44% were female. This showed an almost equal distribution of participants in terms of gender
Marital Status
According to table 1 below, 890 (N=1000) representing 89 percent of the participants were married while 110 participants (11%) were not married.
terms of the number of people in a household as shown in table 2 below, the study showed that the minimum was one person while maximum was six people in a household. The mean number of people in a household was 2.61 associated with a standard deviation from the mean of .958.
Age Category of the Participants
The descriptive statistics revealed that majority (44%) of the participants as shown in figure 3 below were between 35 to 49 years, 32% were 25 to 34 years, 14.5% were 50 to 64 years, 7.5% were 65 years and above while 2% were 18 to 24 years. This suggested that most of the participants from the sampled data were middle aged.
Level of Education
According to figure 4 below majority of the participants (54.8%) had a college degree, 27.5% had attended some college, 8.5% had a post graduate degree while 7.4% and 1.8% had high school diploma and less than high school respectively.
Income Category
Descriptive statistics on income category of the participants as shown in figure 5 indicated that close to forty per cent of the participants earned between 50,000 and 75,000 dollars, 33.2% earned 75,000 to 125,000 dollars, 16.3% earned 25,000 to 49,000 dollars, 9.1% earned more than125,000 dollars while less than 10% earned below 25,000 dollars.
Dwelling Type
Further demographic information as shown in table 3 below revealed that 377 participants representing 37.7 per cent of all the participants lived as a single family, 319 participants (31.9%) were multiple family, 219 participants (21.9%) lived in a condominium/ townhouse while 85 participants (8.5%) lived in a mobile house. The demographic information was meant to determine the descriptive composition of the sampled participants.
Opinion of Respondents on Global Warming and Gasoline Emissions
To understand the market of automobiles better, it was important to seek the opinion from the respondents on how they felt about global warming and gasoline emissions.
Opinion on Global Warming
To analyze the opinion of the respondents on global warming, a seven-point likert scale was used where they were asked whether they were worried about global warming. ( 1= very strongly disagree, 2= strongly agree, 3= disagree, 4= neither agree nor disagree, 5= agree, 6= strongly agree, 7 = very strongly agree). According to the results as shown in table 4 below a mean score on the likert scale was 3.98 associated with a standard deviation of 2.04. This was barely close to the median of 4 (representing neither agree nor disagreed). What this result meant was that in general the respondents tended to have mixed feelings about the global issue and tended to be indifferent about it preferring not to take any sides.
Opinion on Gasoline Emissions
Similarly, to understand how the respondents felt about gasoline emissions, a seven-point likert scale was used where they were asked whether gasoline emission contributed to global warming ( 1= very strongly disagree, 2= strongly agree, 3= disagree, 4= neither agree nor disagree, 5= agree, 6= strongly agree, 7 = very strongly agree). In this case, on average the respondents tended to confirm that gasoline emissions contributed to global warming (M= 4.62, Stdev= 1.697) as shown in table 5 below. This suggested that based on the sample data gasoline emissions contribute significantly to global warming.
The Most Desirable and Least Desirable Automobile Model
On a scale of 1 through 7, respondents were asked the most desirable automobile model where 1 represented least desirable and 7 represented the most desirable. Based on the sampled data as shown in table 6 below the most desired automobile model was the 4 seat all electric model (N=1000, M= 3.92, Stdev= 1.537) while the least desired model was the 1 seat all electric model (N= 1000, M= 2.64, Stdev= 1.231). This suggested a four seat all electric model was more likable than all the automobile models reviewed.
Traditional Media Usage of the Respondents
It was in the interest of Global Motors to establish how the respondents utilized the media. That is which genres of television shows they prefer ranging from Comedy, Drama, Movies/Mini series, News/Documentary, Reality, Science Fiction or Sports.
According to the results in figure 6 above, News/Documentary was the most preferred television show at 25.4%, movies followed a close second at 19.5%, drama at 17.6%, sports at 15.8%, reality shows at 7.6% while science fiction and comedy were the least favorite television shows at 7.1% and 7% respectively. These statistics suggested in general, American households preferred news and documentaries over other type of shows on television based on the sampled data. Movies and mini-series also seemed to be a close “tradition” of American population. However, science fiction, popularly known as sci-fi, comedy and reality shows did not seem to be liked much by American households. It can be concluded from these statistics that Americans in general prefer keeping track of the current affairs of the day and what is going on around the globe.
Social Media Usage of the Respondents
Use of social media has become increasingly popular around the globe. It is due to this exponential growth in utilization of social media that various firms around the world are finding it necessary to market themselves through sites such as facebook, instagram among others. In terms of social median utilization, we analyzed how often the respondents use social media in a day on a scale of 1 to 4 where 1 represented never while 4 represented more than four times a day.
According to the results, there seemed to be an average usage of social media among the sampled respondents at a score of 2.15 associated with a standard deviation of 1.005 as revealed in table 7 above. This result suggested that the respondents use media at least twice a day.
Hypotheses on the Desirability of Automobile Models
The owners of Global Motors believe that different automobile models have different desirability levels. They believe that the automobile models have desirability as below;
|
Vehicle Model Type |
Desirability |
|
1- Seat all-electric |
3 |
|
4-Seat all- electric |
4 |
|
4-Seat gasoline hybrid |
4 |
|
5- Seat diesel hybrid |
3 |
|
5-Seat standard size gasoline |
2 |
To address the issue of desirability of the automobile models, one- sample t-tests were conducted. To test the above hypothesis, a one sample t-test was the most appropriate statistical test (King’oriah, 2004). The questions we want to investigate are:
The hypotheses to test the claims of the owners of Global Motors were formulated as below;
Hypothesis 1: H0 : µ = 3: The mean desirability of 1-seat all-electric model is equal to 3
HA µ ≠ 3: The mean desirability of 1-seat all-electric model is not equal to 3
Hypothesis 2: H0 : µ = 4: The mean desirability of 4-seat all-electric model is equal to 4
HA µ ≠ 3: The mean desirability of 4-seat all-electric model is not equal to 4
Hypothesis 3: H0 µ ≠ 4: The mean desirability of 4-seat gasoline hybrid model is equal to 4
HA µ ≠ 4: The mean desirability of 4-seat gasoline hybrid model is not equal to 4
Hypothesis 4: H0 µ = 3: The mean desirability of 5-seat diesel hybrid model is equal to 3
HA µ ≠ 4: The mean desirability of 5-seat diesel hybrid model is equal to 3
Hypothesis 5: H0 µ = 2: The mean desirability of 5-seat standard gasoline model is equal to 2
HA µ ≠ 2: The mean desirability of 5-seat standard gasoline model is equal not to 2
Hypothesis Test for the Desirability of the 1-Seat All-Electric Model
Before performing one sample t test, normality of the data was verified to identify any possible outliers that would give misleading results. As shown earlier in this report (see table 5 above) the mean from the sample was 2.64 with a standard deviation of 1.231. The results of the t test shown in table 8 below revealed a test statistic of -9.197 associated with a p value of p < 0.01. The decision was therefore to reject the null hypothesis H0. It was concluded that a 95% confidence level, there was no evidence to support the claim that the mean desirability of 1-seat all-electric automobile models was equal to three (t=-9.197, df= 999, p< .01).
Hypothesis Test for the Desirability of the 4-Seat All-Electric Model
Table 5 revealed a mean score on desirability of 4-seat all-electric model as 3.92 associated with a standard deviation of 1.537. Table 9 below reveals the one sample t-test for the a-seat all-electric model.
According to the results above, the test statistic was -1.626 at 999 degrees of freedom associated with a p value of p=1.04. The decision: fail to reject the null hypothesis (H0). It was therefore concluded at 95% confidence level that there was evidence to justify the claim that the desirability of 4-seat all-electric models was equal to four (t= -1.626, df= 999, p= .104). Hence, the claim of the principals of Global Motors was likely to be true.
Hypothesis Test for the Desirability of the 4-Seat Gasoline Hybrid Model
Table 5 earlier in the report revealed a mean score of the desirability of the 4-seat gasoline hybrid as 3.96 and a standard deviation of 1.911. The principals claim that population mean is normally four. Table 10 below shows the one sample t-test for the claim.
The results above revealed a test statistic of -.579 at 999 degrees of freedom associated with a p value of p= .563. The decision: fail to reject the null hypothesis (H0). The conclusion made was that there was evidence to support the claim that the desirability of 4-seat gasoline hybrid models was equal to four (t= -.579, df= 999, p= .563).
Hypothesis Test for the Desirability of the 5-Seat Diesel Hybrid Model
Initial analysis in table 5 showed the mean desirability of 3.46 with a standard deviation from the mean of 1.768. It is claimed by the owners of Global Motors that the mean desirability of this automobile model is equal to three. The one sample t test in table 11 below tested that claim.
According to the table above revealed a t-statistic of 8.281 associated with a p value of p < .01. The decision: reject the null hypothesis. It was concluded that there was evidence to support the claim that the mean desirability of 5-seat diesel hybrid automobile model was equal to three (t= 8.281, df= 999, p < .01). The principals’ claim was therefore likely to be true.
Hypothesis Test for the Desirability of the 5-Seat Standard Size Gasoline Model
Earlier results in table 5 revealed a mean desirability score of 3.21 and a standard deviation of 1.453. The one sample t-test was used to test the claim that the mean score is equal to two as shown in table 12 below.
The results above revealed a t-statistic of 26.342 associated with a p value of p < .01. The decision: reject the null hypothesis and conclude that the claim that the mean desirability score for 5-seat standard size gasoline automobile model is likely to be 2 (t= 26.342, df= 999, p < .01).
Conclusion
The demographic composition of the sample data showed that close to forty per cent of data collected came from an area whose population was 500,000 to 1,000,000 out of a sample size of 1000 respondents. In terms of gender, the sample revealed an almost equal distribution whereby 56% were males and 44% were females. Eighty-nine per cent were married while 11% were not. Majority of the respondents were aged between 35 to 49 years representing 44% of the total respondents sampled.
The results revealed an indifferent opinion on the issue of global warming (M=3.98). This result suggested that the respondents tended to have distinct opinions on the issue of global warming. However, the study showed that gasoline emissions do contribute to global warming (M= 4.62, Stdev= 1.697).
The most desirable automobile model was the 4 seat all electric model (M= 3.92, Stdev= 1.537) while the least desired model was the 1-seat all electric model (M= 2.64, Stdev= 1.23). This result suggested that based on the sampled data most American households prefer the 4-seat all-electric model.
The principals of Global Motors had hypothesized on the desirability of the different automobile models. One sample t-test were performed on each of the hypothesized mean desirability of the automobile models to verify whether the claims of the principals was statistically significant or not. On testing these hypotheses based on the hypothesized mean desirability, there was evidence to support the claim that desirability of 1-seat all-electric model was equal to three (t=-9.197, df= 999, p< .01). However, there was no statistically significant evidence to support the claim that the desirability of the 4-seat all-electric is equal to four (t= -1.626, df= 999, p= .104).
In addition, results revealed no evidence to support the claim that the desirability of a 4-seat gasoline hydrid is equal to 4 (t= -.579, df= 999, p= .563). Desirability of 5-seat diesel model at a score of three was found to be statistically significant (t= 8.281, df= 999, p < .01) and also the desirability claim of a score of two for the 5-seat standard size model (t= 26.342, df= 999, p < .01).
Based on the findings in this report it is evident gasoline emissions is a major concern to American households due to its contribution to global warming. It is therefore recommended that Global Motors consider manufacturing automobiles that are less likely to produce gases that contribute to global warming
References
King’oriah, G. K. (2004) Fundamentals of applied statistics. Nairobi: The Jomo Kenyatta Foundation.
Lucey, T. (1996) Quantitative techniques. 5th ed. London: DP Publications (Low-Priced Edition).
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